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Dec 31, 2024
Viper Energy Q4 2024 Earnings Report
Viper Energy reported strong financial results for Q4 2024, driven by higher production and strategic acquisitions.
Key Takeaways
Viper Energy achieved solid financial performance in Q4 2024, with net income attributable to Viper reaching $210.1 million and operating income of $228.7 million. The company reported an average daily oil production of 29,859 bo/d and an average daily combined production of 56,109 boe/d. Cash and cash equivalents stood at $26.9 million. The company continued its expansion with acquisitions, including a $211 million purchase of mineral and royalty interests. Viper also declared dividends totaling $0.65 per share for the quarter.
Net income attributable to Viper reached $210.1 million, boosted by a $155.9 million tax benefit.
Average daily oil production stood at 29,859 bo/d, with total combined production at 56,109 boe/d.
Total Q4 operating income was $228.7 million.
Cash available for distribution was $89.0 million, with dividends totaling $0.65 per share.
Viper Energy
Viper Energy
Forward Guidance
Viper Energy expects continued production growth, with Q1 2025 daily oil production forecasted at 30,000-31,000 bo/d. Following the completion of its pending acquisition, production is expected to further increase to 47,000-49,000 bo/d in the latter half of 2025.
Positive Outlook
- Projected Q1 2025 average daily oil production of 30,000-31,000 bo/d.
- Expected full-year production increase to 47,000-49,000 bo/d post-acquisition.
- Strategic acquisitions to strengthen revenue and cash flow.
- Strong dividend payout strategy continues.
- Robust balance sheet with ample liquidity for future investments.
Challenges Ahead
- Increased interest expenses due to debt financing of acquisitions.
- Potential volatility in oil and natural gas prices impacting revenue.
- Higher production and ad valorem taxes affecting profitability.
- Uncertainty around regulatory and geopolitical risks in the energy sector.
- Dependence on third-party operators for production growth.